§ 20-23-6-9 — Abandonment of old school corporations; transfer of property and obligations to new corporations; disposition of unneeded property; procedure

Indiana § 20-23-6-9

• Jurisdiction: Indiana
• Title 20: EDUCATION
• Art. 23: ORGANIZATION OF SCHOOL CORPORATIONS
• Ch. 6: Consolidation of School Corporations

Text

(a) When any:
(1) school town;
(2) school city;
(3) school township;
(4) joint school; or
(5) consolidated school;
has become consolidated by resolution or election and the new
governing body has been appointed and legally organized, the former
school township, school town, school city, joint school, or consolidated
school is considered abandoned.
(b) All school:
(1) property;
(2) rights;
(3) privileges; and
(4) any indebtedness;
from the abandoned school is considered to accrue to and be assumed
by the new consolidated school corporation.
(c) The title of property shall pass to and become vested in the new
consolidated school corporation. All debts of the former school
corporations shall be assumed and paid by the new consolidated school
corporation. All the privileges and rights conferred by law upon the
former:
(1) school town;
(2) school city;
(3) school township;
(4) joint school; or
(5) consolidated school;
are granted to the newly consolidated school corporation.
(d) This subsection applies when the consolidated governing body
of a consolidated school corporation decides that property acquired
under subsection (b) from a township is no longer needed for school
purposes. The governing body shall offer the property as a gift to the
township that owned the property before the school was consolidated.
If the property contains a structure that the governing body wishes to
demolish, the governing body shall give written notice of the proposed
demolition to the township. The township shall, within ninety (90) days
after receiving the notice, inform the governing body in writing as to
whether the township wishes to retain the structure. If the township
wishes to retain the structure, the governing body may not demolish the
structure before transferring the property. The township may sell or
lease the property to an Indiana nonprofit corporation that is exempt
from federal income taxation under Section 501 of the Internal
Revenue Code. If the township board accepts the offer, the governing
body shall give the township a quitclaim deed to the property. If the
township board refuses the offer, the governing body may sell the
property in the manner provided in subsection (e).
(e) This subsection provides the procedure for the sale of school
property that is no longer needed for school purposes by the governing
body of a consolidated school corporation. The governing body shall
cause the property to be appraised at a fair cash value by:
(1) one (1) disinterested resident freeholder of the school
corporation offering the property for sale; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana. One (1) of the appraisers described under
subdivision (2) must reside not more than fifty (50) miles from the
property. The appraisals shall be made under oath and spread of record
upon the records of the governing body. A sale may not be made for
less than the appraised value, and the sale must be made for cash. The
sale shall take place after the governing body gives notice under IC 5-3-1 of the terms, date, time, and place of sale.
(f) Proceeds from a sale under subsection (e) shall be placed in the
operations fund of the consolidated school corporation.
(g) This subsection applies when the consolidated governing body
of a consolidated school corporation decides that property acquired
under subsection (b) from a city or town is no longer needed for school
purposes. The governing body shall offer the property as a gift to the
city or town that owned the property before the school was
consolidated. If the property contains a structure that the governing
body wishes to demolish, the governing body shall give written notice
of the proposed demolition to the city or town. The city or town shall,
within ninety (90) days after receiving the notice, inform the governing
body in writing as to whether the city or town wishes to retain the
structure. If the city or town wishes to retain the structure, the
governing body may not demolish the structure before transferring the
property. If the fiscal body of the city or town accepts the offer, the
governing body shall give the city or town a quitclaim deed to the
property. If the fiscal body of the city or town refuses the offer, the
governing body may sell the property in the manner provided in
subsection (e).
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-4-5-8.]

Legislative History

As added by P.L.1-2005, SEC.7. Amended by P.L.2-2006, SEC.97; P.L.113-2006, SEC.13; P.L.220-2015, SEC.3; P.L.244-2017, SEC.25.